Finding an investor in my property???

yvetf18

Hi,
Does anyone know if it is possible to get someone to invest in a property? My property to be exact!

I have been left to carry on with quite a large mortgage and do not want to sell the house if at all possible.

If I could get someone to invest, a little like "buying to rent", except I would still live in the house and pay the mortgage. Then after an agreed period I would either sell or remortgage because by then I would be in a better financial position.

This would all be done professionally with solicitors and agreements signed of course.

All advice and comments are appreciated
Thanks
Yvetf

devils_advocate

So if I invest, what's in it for me?

realwildone

He gets a chunk of money you get the losses when prices fall

yvetf18

Anyone who invested would get a percentage of the equity earned. If they invested in a quarter of my property they would get their investment plus a quarter of the equity in the property when I sell. I wouldn't sell in a price slump. Any other comments greatly appreciated, I want to get a full picture of what it is that I'm trying to do. Thanks.

silvercar

If your selling someone a percentage of your home, you should be paying them rent on that portion of your home. Look up shared equity schemes that do this from the start, you are trying to change your ownership to shared equity, post purchase.

Pennywise

An investor would want more than "their share" of the rise in equity. If the property price increases by 25%, an investor is likely to want more than 25% of his/her share - they'd probably want half of your share of the rise as well to cover their risk.

You say you won't sell in a slump - how do you know? Do you have a crystal ball that shows exactly what the housing market will do and also what your personal circumstances will do? The repossessions and negative equity etc in the 1990s weren't all about people being unable to pay their mortgages - a lot were because people HAD to move - people lose their jobs and have to move closer to other jobs, people's parents get older and have to move closer to them, people get married and divorced meaning a move, people emigrate meaning a move, - virtually all the people I knew who got into difficulties were because they were trapped in negative equity and HAD to move for one reason or another.

How would you structure the legal agreement - who would have the power to decide when to sell? An investor wouldn't at all be keen if you decided if and when to sell, and neither would you if the investor had that power.

If someone has money spare to invest, and they were interested in properties, they'd just buy their own and not have the risks of dealing with an unknown third party.

It seems like a good idea but when you delve depper into the practicalities and costs etc I think you'll find it is a non-starter unless you are thinking of a relative/close friend as the investor.

yvetf18

Thanks Pennywise,
you are just what I need! A clear head to point out all the stuff that I'm not seeing.

yvetf18

Does anyone have any experience of these companies that buy your property and rent it back to you? That's another option I was thinking about.

Leighthal

How about getting some lodgers?